Mobile banking apps, Raast and QR payments drive surge in digital transactions as retail payments reach Rs168.8 trillion
KARACHI: Pakistan’s digital payments ecosystem continued its rapid expansion during the third quarter (January–March 2026) of fiscal year 2025-26, with digital channels processing 3.4 billion transactions worth Rs68.3 trillion, according to the State Bank of Pakistan’s (SBP) latest quarterly review of the country’s payment systems.
The report highlights the accelerating adoption of digital financial services, with mobile banking applications, e-money wallets and the instant payment system Raast playing a central role in reshaping Pakistan’s payments landscape.
Overall, retail payments processed through the banking system reached 3.7 billion transactions during the quarter, reflecting a 9 per cent quarter-on-quarter increase. The total value of these transactions climbed to Rs168.8 trillion, excluding cash transactions conducted outside the formal banking system.
Digital payment channels accounted for 92 per cent of all retail payment transactions by volume, handling 3.4 billion transactions valued at Rs68.3 trillion, up from Rs64.4 trillion in the previous quarter. These channels include mobile banking applications, internet banking, USSD services, ATMs, point-of-sale (POS) terminals, e-commerce platforms and call or IVR banking services.
Mobile banking applications and e-money wallets remained the largest contributors to digital payments. During the quarter, customers carried out 2.89 billion transactions worth Rs41.67 trillion through banking apps and digital wallets offered by commercial banks, branchless banking providers and Electronic Money Institutions (EMIs). These transactions included fund transfers, bill payments, merchant payments and other financial services.
The user base for digital banking services also continued to expand. By the end of March 2026, branchless banking mobile app users had reached 95.8 million, while banking mobile app users increased to 28.9 million. EMI wallet users rose to 7.3 million, and internet banking users reached 16.2 million, reflecting growing consumer confidence in digital financial services.
Raast, Pakistan’s instant payment system, maintained strong momentum during the quarter. Person-to-person (P2P) transactions increased to 664 million, valued at Rs18.88 trillion, compared with 603 million transactions worth Rs15.69 trillion in the preceding quarter.
The platform’s person-to-merchant (P2M) service also continued to expand, with more than 2.6 million merchants onboarded by the end of the quarter. Overall, Raast processed 742 million transactions amounting to Rs23.27 trillion, underlining its growing importance within Pakistan’s digital payments ecosystem.
The number of payment cards in circulation reached 68.25 million by the end of March 2026. Debit cards accounted for the largest share, with 57.2 million cards, representing 84 per cent of the total.
During the quarter, payment cards were used for 272.2 million ATM transactions worth Rs4.99 trillion, 150.4 million POS transactions amounting to Rs810 billion, and 32.3 million e-commerce transactions valued at Rs140 billion.
QR code-based merchant payments also recorded robust growth. Transactions through QR-enabled merchants rose 41 per cent quarter-on-quarter to 87.3 million, while their value surged 63 per cent to Rs500 billion, reflecting increasing merchant acceptance of digital payment solutions.
Online shopping through bank accounts and digital wallets continued to gain momentum as consumers completed 434.5 million e-commerce purchases worth Rs470 billion using account-based and wallet-based payment channels during the quarter.
Despite the rapid growth in digital banking, traditional banking infrastructure remained an integral part of the financial system. By the end of March 2026, Pakistan had 20,232 bank branches and 819,397 branchless banking agents.
Bank branches processed 127.9 million transactions worth Rs99.5 trillion during the quarter, while branchless banking agents facilitated 154.7 million transactions amounting to Rs1.1 trillion.
The SBP also reported that PRISM+, Pakistan’s Real-Time Gross Settlement (RTGS) system for high-value transactions, settled 1.5 million transactions worth Rs389.8 trillion during the January–March 2026 quarter. Government securities transactions continued to account for the largest share of settlement values processed through the system.
According to the central bank, the sustained expansion of digital payments, rising adoption of mobile banking applications, increasing merchant acceptance, and the strong performance of payment infrastructures such as Raast and PRISM+ demonstrate Pakistan’s continued progress towards a more inclusive, resilient and digitally enabled financial ecosystem.
